Puma Company has three service departments,X,Y and Z and two production departments,P1 and P2.Costs in Departments X and Y are allocated based on square feet and costs in Department Z are allocated based on direct labor hours.
The following data are available:
Service Department:
Producing Department:
Assume the direct method of allocating service department costs is used.
Required:
A)What is the total cost of Producing Department P1 after allocating the service departments' costs?
B)What is the total cost of Producing Department P2 after allocating the service departments' costs?

Question

Puma Company has three service departments,X,Y and Z and two production departments,P1 and P2.Costs in Departments X and Y are allocated based on square feet and costs in Department Z are allocated based on direct labor hours.
The following data are available:
  Service Department:
  Producing Department:
  Assume the direct method of allocating service department costs is used.
Required: 
A)What is the total cost of Producing Department P1 after allocating the service departments' costs? 
B)What is the total cost of Producing Department P2 after allocating the service departments' costs?

Quizplus · Accepted Answer

The Answer of Puma Company has three service departments,X,Y and Z and two production departments,P1 and P2.Costs in Departments X and Y are allocated based on square feet and costs in Department Z are allocated based on direct labor hours.
The following data are available:
  Service Department:
  Producing Department:
  Assume the direct method of allocating service department costs is used.
Required: 
A)What is the total cost of Producing Department P1 after allocating the service departments' costs? 
B)What is the total cost of Producing Department P2 after allocating the service departments' costs?

Puma Company Has Three Service Departments,X,Y and Z and Two